Net loss of NOK 82.05M for Norcod in Q3 2024 due to elevated mortality

Norcod AS has released its report for the third quarter and the nine months ended September 30, 2024, highlighting losses due to "extraordinary" mortality related to the marine heatwave and unusually high temperatures during the summer.

To be more precise, the Norwegian cod farming company reported a net loss of NOK 82.05 million for the third quarter, compared to NOK 40.84 million a year ago. For the nine months, the net loss was NOK 194.31 million, compared to NOK 135.82 million for the same period last year.

In contrast, Norcod assured "strong" market conditions with higher sales prices (a 20% increase in sales prices from Q1 to Q3 2024), a promising opportunity pipeline, and accelerated sales processes, which translated into increased sales in both periods.

Specifically, for the third quarter, sales were NOK 68.95 million, compared to NOK 21.42 million last year, and for the nine months, sales reached NOK 273.46 million, compared to NOK 185.96 million a year ago.

"The market conditions and fundamentals for farmed cod have never been better, supporting a positive outlook for farmed cod and Norcod," a statement reads.

What happens next

Norcod is pinning its hopes on the new Bjørnvika (Nesna) site preparation for its first stocking and Snow Cod brand consolidation, positioning the product in a premium category in key growth markets.

It also expects a significant reduction in wild cod prices and the corresponding availability of raw materials.

"The company expects production costs to normalize at significantly lower levels in the upcoming quarters, in line with the quarters preceding Q3-24," the statement concludes.

For the second quarter of 2024, Norcod reported strong financial results showcasing significant revenue growth and improvements in operational efficiency.